votes and proceedings · 2008-07-03 · 1635 1996-97 the parliament of the commonwealth of...

1635

1996-97

THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA

HOUSE OF REPRESENTATIVES

VOTES AND PROCEEDINGSNo. 95

TUESDAY, 17 JUNE 1997

I The House met, at 2 p.m., pursuant to adjournment. The Speaker (theHonourable Bob Halverson) took the Chair, and read Prayers.

2 MINISTERIAL ARRANGEMENTS

Mr Fischer (Acting Prime Minister) informed the House that, during the absenceabroad of Mr Sharp (Minister for Transport and Regional Development), MrScott (Minister for Veterans' Affairs) would answer questions on his behalf.

3 QUESTIONS

Questions without notice being asked-

Member ordered to withdraw

At 2.34 p.m. the Member for Holt (Mr G. J. Evans-Deputy Leader of theOpposition) was ordered, under standing order 304A, to withdraw from theHouse for one hour for raising a frivolous point of order after having beencautioned not to do so, and he accordingly withdrew from the Chamber.

Questions without notice continuing-

Paper

Mr S. F. Smith, in accordance with standing order 321, having called fordocuments quoted from by Dr Kemp (Minister for Schools, VocationalEducation and Training)-

Dr Kemp presented the following paper:

NSW opposes ill-conceived federal schools employment agency plan-Copy ofmedia release by Mr Aquilina, New South Wales Minister for Education andTraining, 12 June 1997.

Questions without notice continuing-

Member ordered to withdraw

At 2.42 p.m. the Member for Corio (Mr O'Connor) was ordered, under standingorder 304A, to withdraw from the House for one hour for refusing to resume hisseat when directed to do so by the Chair, and he accordingly withdrew from theChamber.

1636 No. 95-17 June 1997

Questions without notice continued.

4 SUSPENSION OF STANDING AND SESSIONAL ORDERS MOVED

Mr O'Keefe moved-That so much of the standing and sessional orders besuspended as would prevent the Member for Burke moving forthwith-Thatthis House, in light of:

(1) the Government's election commitment not to reduce the sugar tariffbelow the present level of $55 per tonne, as Australia had already met itscurrent obligations under the World Trade Organisation agreement;

(2) the fact that Australia's Uruguay Round obligation for sugar is a tariff of$70 per tonne by the year 2000, and Australia's current tariff, at $55 pertonne, sits comfortably within that obligation;

(3) the fact that many of our export destinations have sugar tariffs massivelyhigher than us, which suggests that there is no reason for Australia to go italone on the sugar tariff;

(4) the fact that, despite the above, the Government has decided to abolish thesugar tariff effective from 1 July 1997;

(5) the fact that the abolition of the tariff will mean job losses and a loss ofincome of $27m. for Australian sugar growers; and

(6) the fact that the Government has no plans to bring the measure before theParliament for debate before it comes into effect on 1 July this year-

therefore calls for order of the day No. 64, government business, to be broughton forthwith so that Members will have an opportunity to debate and vote onthe proposals contained in Customs Tariff Proposal No. 2 (1997) to removecustoms duty from sugar and sugar by-products.

Debate ensued.

The time allowed by standing order 91 for debate on the motion havingexpired-

Question-put.

The House divided (the Deputy Speaker, Mr Nehl, in the Chair)-

No. 95-17 June 1997 1637

AYES, 43

Mr AlbaneseMr AndrenMr BeddallMr BevisMr BreretonMr BrownMr CreanMrs CrosioMr DargavelMs EllisMr G. J. Evans

Mr M. J. EvansMr M. J. FergusonMr FitzgibbonMr E. L. Grace*Mr GriffinMr HattonMr HoldingMr HollisMr JenkinsMr JonesMr Katter

Mr KerrMr LathamDr LawrenceMr LeeMr McClellandMr McLeayMr McMullanMr MartinMr MelhamMr A. A. MorrisMr P. F. Morris

Mr O'KeefeMr PriceMr QuickMr Sawford*Mr Sercombe*Mr S. F. SmithMr TannerDr TheophanousMr K. J. ThomsonMr Willis

NOES, 76

Mr AbbottMr AndersonMr J. N. AndrewMr AnthonyMr BarresiMr BartlettMr BillsonMrs BishopMr BradfordMr BroadbentMr BroughMr CadmanMr E. H. CameronMr R. A. CameronMr CausleyMr CharlesMr CobbMr CostelloMrs Draper

Mrs ElsonMr EntschMr R. D. C. EvansMr FaheyMs GambaroMrs GashMr GeorgiouMrs E. J. GraceMr HardgraveMr HawkerMr Hicks*Mr HockeyMs JeanesMr JullMiss J. M. KellyDr KempMr LiebermanMr LindsayMr Lloyd

Mr McArthur*Mr McDougallMr McGauranMr McLachlanMr MilesMr MooreMrs MoylanMr MutchMr NairnDr NelsonMr NevilleMr NugentMr ProsserMr PyneMr RandallMr ReidMr ReithMr RonaldsonMr Ruddock

Mr ScottMr SinclairMr SlipperMr A. C. SmithMr W. L. SmithDr SouthcottMrs SullivanMr TaylorMr A. P. ThomsonMr TrussMr TuckeyMr M. A. J. VaileMrs D. S. ValeMr WakelinMrs WestMr WilliamsDr WooldridgeMs Worth*Mr Zammit

* Tellers

And so it was negatived.

5 PAPERS

The following papers were presented:

Corporations and Securities-Parliamentary Joint Committee-Report-Section 1316 of the Corporations Law, 27 November 1995-Governmentresponse.

Finance-Advance to the Minister for Finance-Statements for March and April 1997.Supporting applications of issues from the Advance during March and April1997.Provision for running costs borrowings-

1638 No. 95-17 June 1997

Statement for April 1997.Supporting applications of issues from the Provision during April 1997.

Financing Jervis Bay Territory-Report by Don Nicholls, AM, December1995-Government response and explanatory note.

Industry Commission Act-Industry Commission-Report No. 58-Theautomotive industry, 26 May 1997-Volume I-Report.Volume II-Appendices.

King Island Dairy Products Pty Limited ACN 009 513 231-Investigation bythe Australian Securities Commission-Final report, 21 May 1997, Volumes 1to 5.

National Common Police Services-Australasian Police Ministers' Council-Report for 1995-96.

National Crime Authority-Parliamentary Joint Committee-Report-Lawenforcement in Australia: An international perspective, February 1997-Government response.

Native Title and the Aboriginal and Torres Strait Islander Land Fund-Parliamentary Joint Committee-Report-Annual reports for 1994-95,prepared pursuant to Part 4A of the Aboriginal and Torres Strait IslanderCommission Act 1989, July 1996-Government response.

Services Trust Funds Act-Australian Military Forces Relief Trust Fund-Report for 1996.

Treaties-Bilateral with national interest analysis-Agreement on Economic, Trade and Technical Cooperation between theGovernment of Australia and the Government of the Republic of Lebanon, doneat Beirut on 11 March 1997.Multilateral with national interest analysis-Amendment, done at New York on 22 May 1995, to article 20, paragraph (1) ofthe Convention on the Elimination of all Forms of Discrimination againstWomen, of 18 December 1979.

6 PAPERS-MOTION TO TAKE NOTE OF PAPERS

Mr Reith (Leader of the House) moved-That the House take note of thefollowing papers:

Financing Jervis Bay Territory-Report by Don Nicholls, AM, December1995-Government response and explanatory note.

Industry Commission Act-Industry Commission-Report No. 58-Theautomotive industry, 26 May 1997-Volume I-Report.Volume II-Appendices.

National Common Police Services-Australasian Police Ministers' Council-Report for 1995-96.

Treaty-

No. 95-17 June 1997 1639

Multilateral with national interest analysis-Amendment, done at New York on 22 May 1995, to article 20, paragraph (1) ofthe Convention on the Elimination of all Forms of Discrimination againstWomen, of 18 December 1979.

Debate adjourned (Mr Crean), and the resumption of each debate made an orderof the day for the next sitting.

7 KING ISLAND DAIRY PRODUCTS PTY LIMITED-REPORT OF THEAUSTRALIAN SECURITIES COMMISSION-PUBLICATION OF PAPER

Mr Reith (Leader of the House), by leave, moved-That this House authorisesthe publication of the final report of the investigation by the AustralianSecurities Commission into the affairs of King Island Dairy Products PtyLimited ACN 009 513 231, 21 May 1997-Volumes I to 5.

Question-put and passed.

8 PROPOSED DISCUSSION OF MATTER OF PUBLIC IMPORTANCE-UNEMPLOYMENT

The House was informed that Mr M. J. Ferguson had proposed that a definitematter of public importance be submitted to the House for discussion, namely,"The shocking loss of more than 40,000 jobs in May, further adding to therising levels of unemployment caused by the Government's failed policies".

The proposed discussion having received the necessary support-

Mr M. J. Ferguson rising to address the House-

Mr Reith (Leader of the House) moved-That the business of the day be calledon.


9 BILLS REFERRED TO MAIN COMMITTEE

Mr Cadman (Chief Government Whip), pursuant to notice, moved-That thefollowing Bills be referred to the Main Committee for further consideration:

Wool International Amendment 1997;

International Monetary Agreements Amendment 1997;

Commonwealth Vehicles (Registration and Exemption from Taxation) 1997;

Commonwealth Motor Vehicles (Liability) Amendment 1997; and

Broadcasting Services Amendment 1996.

Debate ensued.


10 DEVELOPMENT OF NO. 6 SQUADRON FACILITIES AT RAAF BASEAMBERLEY, QLD-APPROVAL OF WORK

Mr Jull (Minister for Administrative Services), pursuant to notice, moved-That, in accordance with the provisions of the Public Works Committee Act1969, it is expedient to carry out the following proposed work which wasreferred to the Parliamentary Standing Committee on Public Works and on

1640 No. 95-17 June 1997

which the committee has duly reported to Parliament: Development of No. 6Squadron facilities at RAAF Base Amberley, Qld.


11 TAXATION LAWS AMENDMENT BILL (NO. 3) 1997

The order of the day having been read for the further consideration in detail ofthe Bill-

Schedule I-

Debate resumed on the Schedule and on the amendments moved together by MrMiles (Parliamentary Secretary (Cabinet) to the Prime Minister), viz.:

Amendment-

Item 3, page 13 (line 28), omit "1990-91", substitute "1992-93".

New Parts and new items-

Page 26 (after line 22), at the end of the Schedule, add:

Part 2-Amendment of the Terminations PaymentsTax (Assessment and Collection) Act 1997

44 Subsection 7(2)

After "invalidity payment", insert "or CGT exempt component".

Part 3-Application45 Application

The amendments made by this Schedule apply to disposals of assets onor after 1 July 1997.

Question-That the amendments be agreed to-put and passed.

Schedule, as amended, agreed to.

Schedule 2, by leave, taken as a whole-

Mr S. F. Smith moved the following amendment: Page 27 (lines 4-32), omititem 1, substitute:

1 Paragraph 23(pa)

Omit subparagraphs (ia), (ib) and (ic), substitute:

those rights to mine were acquired by the person before 7.30 pm,by legal time in the Australian Capital Territory, on 20 August1996 and the person was a bona fide prospector, that is to say-

Debate continued.

Amendment negatived.

Mr S. F. Smith moved the following amendment: Page 27 (lines 4-32), omititem 1, substitute:

No. 95-17 June 1997

1 Paragraph 23(pa)

Omit subparagraphs (ia), (ib) and (ic), substitute:

(ia) those rights to mine were acquired by the person before 7.30pm, by legal time in the Australian Capital Territory on 20August 1996; and

(ib) the income was derived prior to 20 August 2001; and

(ic) the person on or before 20 August 1996 was a bona fideprospector, that is to say-

Debate continued.

Question-That the amendment be agreed to-put.

The House divided (the Second Deputy Speaker, Mr Jenkins, in the Chair)-

AYES, 43

Mr AlbaneseMr BeddallMr BevisMr BreretonMr BrownMr CreanMrs CrosioMr DargavelMs EllisMr G. J. EvansMr M. J. Evans

Mr AbbottMr AndersonMr K. J. AndrewsMr AnthonyMr BarresiMr BartlettMr BillsonMrs BishopMr BradfordMr BroadbentMr BroughMr CadmanMr E. H. CameronMr R. A. CameronMr CausleyMr CharlesMr CobbMrs DraperMrs ElsonMr Entsch

Mr L. D. T. FergusonMr M. J. FergusonMr FitzgibbonMr E. L. Grace*Mr GriffinMs HansonMr HattonMr HoldingMr HollisMr JonesMr Kerr

Mr LathamDr LawrenceMr LeeMr McClellandMr McMullanMr MartinMr MelhamMr A. A. MorrisMr P. F. MorrisMr O'ConnorMr O'Keefe

Mr PriceMr QuickMr RocherMr Sawford*Mr Sercombe*Mr S. F. SmithMr TannerDr TheophanousMr K. J. ThomsonMr Willis

NOES, 78

Mr R. D. C. EvansMr FaheyMr FilingMr ForrestMs GambaroMrs GashMr GeorgiouMrs E. J. GraceMr HardgraveMr HawkerMr Hicks*Mr HockeyMs JeanesMr JullMr KatterMrs D. M. KellyMiss J. M. KellyDr KempMr LiebermanMr Lindsay

Mr LloydMr McArthur*Mr McDougallMr McLachlanMr MilesMr MooreMrs MoylanMr MutchMr NairnMr NehlDr NelsonMr NevilleMr NugentMr PyneMr RandallMr ReidMr ReithMr RonaldsonMr RuddockMr Scott

Mr SinclairMr SlipperMr A. C. SmithMr W. L. SmithDr SouthcottMrs SullivanMr TaylorMr A. P. ThomsonMr TrussMr TuckeyMr M. A. J. VaileMrs D. S. ValeMr WakelinMrs WestMr WilliamsDr WooldridgeMs Worth*Mr Zammit

* Tellers

1642 No. 95-17 June 1997

And so it was negatived.

Mr S. F. Smith moved the following amendment: Page 27 (lines 12 and 13),omit ", and at the time the income was derived,".

Debate continued.


On the motion of Mr Miles the following amendment was made, after debate:

Page 27 (after line 32), at the end of the Schedule, add:

Income Tax Assessment Act 1997

2 Subsection 330-60(1)

Omit "If you are a *genuine prospector, your *ordinary income (for the1997-98 income year or a later income year)", substitute "Your*ordinary income".


After "income tax", insert:

if:

(d) you acquired those rights before 7.30 pm, by legal time in theAustralian Capital Territory, on 20 August 1996; and

(e) you *derive the *ordinary income before 20 August 2001; and

(f) you were a *genuine prospector on or before 20 August 1996,and you are one when you derive the ordinary income.

4 After subsection 330-60(1)

Insert:

(I A) If you *derived the *ordinary income under a contract for the sale,transfer or assignment of the rights entered into after 7.30 pm, bylegal time in the Australian Capital Territory, on 20 August 1996,the exemption applies only to:

(a) so much of the ordinary income as you would have derived ifthose rights had been sold for their market value at that time;

reduced by:

(b) any amounts you incurred before that time that you havededucted or can deduct for an earlier income year underDivision 10 of Part III of the Income Tax Assessment Act1936 in respect of expenditure on exploration or prospecting(within the meaning of section 122J or 122JF of that Act) inthat area.


Omit "The exemption", substitute "If subsection (1 A) does not apply,the exemption".

No. 95-17 June 1997 1643

6 Paragraph 330-60(2)(b)Omit "section 122J", substitute "Division 10 of Part III".

7 Paragraph 330-60(2)(b)Omit "that section", substitute "section 122J or 122JF of that Act".

Schedule, as amended, agreed to.

Schedules 3 to 10, by leave, taken together, and agreed to, after debate.

Remainder of Bill, by leave, taken as whole-

On the motion of Mr Miles, by leave, the following amendments were madetogether, after debate:

Schedule 11-

New items-

Page 61 (before line 4), before item 1, insert:

1A Subsection 73B(1) (definition of residual feedstock expenditure)After "income" (first occurring), insert "in relation to related researchand development activities".

1 B Subsection 73B(1) (paragraph (a) of the definition of residualfeedstock expenditure)After "income", insert "in relation to those activities".

1C Subsection 73B(1) (paragraph (b) of the definition of residualfeedstock expenditure)After "income", insert "in relation to those activities".

1 D Subsection 73B(4H) (table)Omit "Annual deduction percentage", substitute "Percentage".

1E Subsection 73B(12B) (formula)

Omit "past".

1F Subsection 73B(12B) (definition of undeducted pastexpenditure)Repeal the definition, substitute:

undeducted expenditure means so much of the core technologyexpenditure incurred by the company during the current year orprevious years of income in relation to the relevant core technologyunder contracts entered into at or after the time referred to insubsection (12) as has not been allowed as a deduction from thecompany's assessable income of any of those previous years ofincome.

1G Subsection 73B(12B) (paragraph (b) of the definition of currentyear core technology adjustment amount)Omit "73B(27)(c)", substitute "73B(27C)(c)".

1644 No. 95-17 June 1997

1H Subsection 73B(14B)After "income" (first occurring), insert "in relation to related researchand development activities".

1J After subsection 73B(24A)Insert:

(24B) Where:

(a) a deduction has been allowed or is allowable to an eligiblecompany under subsection (1 5AA) in respect of expenditureincurred in the acquisition or construction of a unit of post-23July 1996 pilot plant; and

(b) during a year of income, the unit of post-23 July 1996 pilotplant is disposed of, lost or destroyed; and

(c) the company had used the unit of post-23 July 1996 pilotplant before it was disposed of, lost or destroyed exclusivelyfor the purpose of the carrying on by or on behalf of thecompany of research and development activities; and

(d) no deduction has been allowed or is allowable to thecompany under section 54 in respect of the unit of post-23July 1996 pilot plant;

then:

(e) in a case where the consideration receivable in respect of thedisposal, loss or destruction is less than the written-downvalue of the unit of post-23 July 1996 pilot plant:

(i) if the aggregate research and development amount inrelation to the company in relation to the year ofincome is greater than $20,000-the amountascertained by multiplying the amount by which thatwritten-down value exceeds that considerationreceivable by 1.25; or

(ii) if the aggregate research and development amount inrelation to the company in relation to the year ofincome is less than or equal to $20,000-the amountby which that written-down value exceeds thatconsideration receivable;

is allowable as a deduction from the assessable income of thecompany of the year of income; or

(f) in a case where the consideration receivable in respect of thedisposal, loss or destruction is greater than the written-downvalue of the unit of post-23 July 1996 pilot plant-so muchof the excess as does not exceed the difference between thecost of the unit of post-23 July 1996 pilot plant and thewritten-down value of the unit of post-23 July 1996 pilot

No. 95-17 June 1997 1645

plant shall be included in the assessable income of thecompany of the year of income.

Amendments-

Item 3, page 61 (line 21), omit "I and", substitute "IA to".

Schedule 14-

Item 17, page 73 (lines 3 to 14), omit the item, substitute:

17 Application

(1) The amendments made by this Part apply to the 1996-97 year of

income.

(2) However, the amendments made by items 5 to 15 have effect only in

respect of acts, omissions or events happening after 26 March 1997.

Item 25, page 75 (line 1) to page 77 (line 8), omit sections 160JA and 160JB,substitute:

160JA Interpretative provisions for Divisions 3A, 3B, 3C, 3CA, 3CB, 3CC,3CD and 3D

In Divisions 3A, 3B, 3C, 3CA, 3CB, 3CC, 3CD and 3D, unless thecontrary intention appears:

100% subsidiary has the meaning given by section 975-505 of theIncome Tax Assessment Act 1997.

abnormal trading has the meaning given by Subdivision 960-H ofthe Income Tax Assessment Act 1997.

approved depositfund has the meaning given by section 10 of theSuperannuation Industry (Supervision) Act 1993.

arrangement has the same meaning as in the Income TaxAssessment Act 1997.

capital shareholding of less than 1% has the meaning given bysection 160ZNSQ.

complying approved deposit fund means a complying approveddeposit fund within the meaning of section 47 of theSuperannuation Industry (Supervision) Act 1993.

complying superannuation fund means a complyingsuperannuation fund within the meaning of section 45 of theSuperannuation Industry (Supervision) Act 1993.

constitution of a company has the same meaning as in the IncomeTax Assessment Act 1997.

dividend has the meaning given by subsections 6(1), (4) and (5) andsection 94L.

dividend shareholding of less than 1% has the meaning given bysection 160ZNSQ.

entity has the meaning given by section 960-100 of the Income TaxAssessment Act 1997.

1646 No. 95-17 June 1997

head company has the meaning given by section 160ZNSM.

indirectly has the same meaning as in the Income Tax AssessmentAct 1997.

interposed company has the meaning given by section 160ZNSN.

listed public company has the same meaning as in the Income TaxAssessment Act 1997.

member of a company includes a shareholder or stockholder.

more than a 50% stake has the meaning given by section 160ZNC.

more than 50% of the company's capital distributions has themeaning given by section 160ZNJ.

more than 50% of the company's dividends has the meaning givenby section 160ZNI.

more than 50% of the listed public company's capital distributionshas the meaning given by section 160ZNSJ.

more than 50% of the listed public company's dividends has themeaning given by section 160ZNSI.

more than 50% of the voting power has the meaning given bysection 160ZNH.

more than 50% of the voting power in the listed public companyhas the meaning given by section 160ZNSH.

notional net capital gain has the meaning given by subsection160ZNF(1).

notional net capital loss has the meaning given by subsection160ZNF(2).

notional shareholder has the meaning given by section 160ZNSO.

ownership test period has the meaning given by section 160ZNC.

ownership test time has the meaning given by section 160ZNSG.

part of a substantial shareholding has the meaning given bysection 166-245 of the Income Tax Assessment Act 1997.

public company means a company that is a public company asdefined by section 103A for the year of income.

redeemable shares has the same meaning as in the Income TaxAssessment Act 1997.

same business test has the meaning given by Division 3C.

same business test period has the meaning given by sections160ZNB, 160ZND and 160ZNE and subsection 160ZNSB(5).

shareholding interest has the meaning given by section 175-65 ofthe Income Tax Assessment Act 1997.

special company has the same meaning as in the Income TaxAssessment Act 1997.

No. 95-17 June 1997 1647

substantial continuity of ownership has the meaning given bysection 160ZNSG.

substantial shareholding: see part of a substantial shareholding.

superannuation fund has the meaning given by section 10 of theSuperannuation Industry (Supervision) Act 1993.

test period has the meaning given by section 160ZNSB.

test time has the meaning given by sections 160ZNB, 160ZND,160ZNE and 160ZNSB.

voting share in a company means:

(a) if the company is a body corporate-a voting share asdefined by section 9 of the Corporations Law; and

(b) otherwise-a share that would be a voting share as definedby that section if the company were a body corporate.

voting shareholding of less than 1% has the meaning given bysection 160ZNSQ.

Item 32, page 78 (line 12), omit "and 3C", substitute ", 3C, 3CB, 3CC and3CD".

Item 32, page 86 (line 20), omit "constituent document", substitute"constitution".

Item 32, page 86 (line 33), omit "constituent document", substitute"constitution".

Item 32, page 88 (after line 19), after Division 3C, insert:

Division 3CA-Net capital gain or net capital loss oflisted public company or its 100% subsidiaryfor year of income in which ownership orcontrol of the company changed

Guide to Division 3CA

160ZNSA What this Division is about

This Division modifies the way in which the rules in Division 3Aapply to a listed public company (and also its 100% subsidiaries). Itmakes it easier for the company to comply with those rules.

If the company has maintained the same owners as between certainpoints of time, it does not need to prove it has maintained the sameowners throughout the periods in between.

The tests for finding out whether the company has maintained thesame owners are set out in Divisions 3CB, 3CC and 3CD.

1648 No. 95-17 June 1997

Table of sections160ZNSB How Division 3A applies to a listed public company

I160ZNSC How to work out the net capital gain or net capital loss

I60ZNSD How Division 3A applies to 100% subsidiary of a listed publiccompany

I60ZNSE Companies can choose that this Division is not to apply to them

160ZNSB How Division 3A applies to a listed public company

(1) This Division modifies the way Division 3A applies to a companythat is a listed public company at all times during the year of income(the test period).Note I: Division 3A is about when a company must calculate its net capital

gain or net capital loss for the year of income in a special way.

Note 2: This Division also modifies how Division 3A applies to a 100%subsidiary of a listed public company: see section 160ZNSD.

Note 3: A company can choose that this Division is not to apply to it: seesection I60ZNSE.

No abnormal trading

(2) If there is no abnormal trading in shares in the listed publiccompany during the test period, it is taken to have met the conditionin paragraph I60ZNB()(a) (which is about there being personshaving more than a 50% stake in it during the whole of the year ofincome).

Abnormal trading, but substantial continuity of ownership

(3) If there is abnormal trading, but there is substantial continuity ofownership of the company as between the start of the test period andthe time of each abnormal trading, the company is also taken tohave met the condition in paragraph I60ZNB(l)(a).

Note: See section 160ZNSG to work out whether there is substantialcontinuity of ownership.

Abnormal trading without substantial continuity of ownership

(4) If there is abnormal trading, and there is no substantial continuity ofownership of the company as between the start of the test period andthe time of the abnormal trading, the company is taken to havefailed to meet the condition in paragraph I60ZNB(1)(a).

Satisfies the same business test

(5) However, if the company satisfies the same business test for the restof the year of income (the same business test period) after the firstabnormal trading covered by subsection (4), it is taken to havesatisfied the condition in paragraph I60ZNB()(b) (which is aboutthe company carrying on the same business).

Note: For the same business test: see Division 3C.

No. 95-17 June 1997 1649

(6) Apply the same business test to the business that the companycarried on immediately before the time of the first abnormal trading(the test time) covered by subsection (4).

160ZNSC How to work out the net capital gain or net capital loss

(1) If the listed public company must calculate its net capital gain or netcapital loss for the year of income under Division 3A, then, individing the year of income into periods, apply subsection (2)instead of subsection 160ZNE(3).

(2) The last period ends at the end of the year of income. Each period(except the last) ends at the earlier of:

(a) the earliest time when there is an abnormal trading in sharesin the listed public company (except one covered bysubsection (3)); or

(b) the earliest time when a person begins to control, or becomesable to control, the voting power in the listed public company(whether directly, or indirectly through one or moreinterposed entities) for the purpose, or for purposes includingthe purpose, of:

(i) getting some benefit or advantage to do with how thisAct applies; or

(ii) getting such a benefit or advantage for someone else.

(3) In working out when a period ends, disregard an abnormal trading ifthere is substantial continuity of ownership of the company asbetween the start of the period and the time of the abnormal trading.Note: See section 160ZNSG to work out whether there is substantial

continuity of ownership.

160ZNSD How Division 3A applies to 100% subsidiary of a listed publiccompany

(1) This Division also modifies the way Division 3A applies to acompany that is not a listed public company, but only if theconditions in subsections (2) and (3) are met.Note: Division 3A is about when a company must calculate its net capital

gain or net capital loss for the year of income in a special way.

(2) The company (the subsidiary) must be a 100% subsidiary of anothercompany (the holding company) at all times during the subsidiary'syear of income.

(3) Also, the holding company must be a listed public company at alltimes during that year of income.

(4) If the conditions are met, then, for the purposes of applyingDivision 3A to the subsidiary, this Division applies to the subsidiaryas if:

(a) the subsidiary were itself a listed public company at all timesduring the year of income; and

1650 No. 95-17 June 1997

(b) an abnormal trading in shares in the holding company duringthe year of income were an abnormal trading in shares in thesubsidiary.

(Divisions 3CB, 3CC and 3CD apply to the subsidiary in the sameway and for the same purpose).

16ZNSE Companies can choose that this Division is not to apply to them(1) The listed public company or subsidiary can choose that Division

3A is to apply to it for the year of income without the modificationsmade by this Division.

(2) The company must choose on or before the day it lodges its returnunder section 161, 162 or 163 for the year of income, or before alater day if the Commissioner allows.

Division 3CB-Tests for finding out whether the listedpublic company has maintained the sameowners

Guide to Division 3CB

160ZNSF What this Division is about

This Division has the tests to work out whether a listed publiccompany has maintained the same owners as between differenttimes.

Divisions 3CC and 3CD have rules that make it easier for thecompany to satisfy these ownership tests.

Note: The rules in this Division also apply to a company that is a 100%

subsidiary of a listed public company: see section 160ZNSD.

Table of sectionsSubstantial continuity of ownership160ZNSG Substantial continuity of ownership

The ownership testsI60ZNSH Who has more than 50% of the voting power in the listed public

company at a particular time

160ZNSI Who has rights to more than 50% of the listed publiccompany's dividends at a particular time

I60ZNSJ Who has rights to more than 50% of the listed publiccompany's capital distributions at a particular time

Rules affecting the operation of the ownership testsI60ZNSK Rules in Division 3B apply

No. 95-17 June 1997 1651

Substantial continuity of ownership

160ZNSG Substantial continuity of ownership(1) There is substantial continuity of ownership of the listed public

company as between the start of the test period and another time inthe test period if (and only if) the conditions in this section are met.

Voting power

(2) There must be persons (none of them companies) who had morethan 50% of the voting power in the listed public company at thestart of the test period. Also, those persons must have had more than50% of the voting power in the listed public company immediatelyafter the other time in the test period.Note: To work out who had more than 50% of the voting power: see section

160ZNSH.

Rights to dividends(3) There must be persons (none of them companies) who had rights to

more than 50% of the listed public company's dividends at the startof the test period. Also, those persons must have had rights to morethan 50% of the listed public company's dividends immediatelyafter the other time in the test period.Note: To work out who had rights to more than 50% of the listed public

company's dividends: see section I60ZNSI.

Rights to capital distributions(4) There must be persons (none of them companies) who had rights to

more than 50% of the listed public company's capital distributionsat the start of the test period. Also, those persons must have hadrights to more than 50% of the listed public company's capitaldistributions immediately after the other time in the test period.Note: To work out who had rights to more than 50% of the listed public

company's capital distributions: see section I60ZNSJ.

When to apply the test

(5) To work out whether a condition in this section was satisfied at atime (the ownership test time), apply the ownership test for thatcondition.

The ownership tests160ZNSH Who has more than 50% of the voting power in the listed public

company at a particular timeIf it is the case, or it is reasonable to assume, that there are persons(none of them companies) who, at the ownership test time, betweenthem control, or are able to control, the voting power in the listedpublic company (whether directly, or indirectly through one or moreinterposed entities), those persons have more than 50% of thevoting power in the listed public company at that time.

1652 No. 95-17 June 1997

160ZNSI Who has rights to more than 50% of the listed public company'sdividends at a particular time

If it is the case, or it is reasonable to assume, that there are persons(none of them companies) who, at the ownership test time, havebetween them the right to receive for their own benefit (whetherdirectly, or indirectly through one or more interposed entities), morethan 50% of any dividends that the listed public company may pay,those persons have rights to more than 50% of the listed publiccompany's dividends at that time.

160ZNSJ Who has rights to more than 50% of the listed public company'scapital distributions at a particular time

If it is the case, or it is reasonable to assume, that there are persons(none of them companies) who, at the ownership test time, havebetween them the right to receive for their own benefit (whetherdirectly, or indirectly through one or more interposed entities), morethan 50% of any distribution of capital of the listed public company,those persons have rights to more than 50% of the listed publiccompany's capital distributions at that time.

Rules affecting the operation of the ownership tests

160ZNSK Rules in Division 3B apply

(1) The rules in these sections also apply for the purposes of anownership test in this Division:

(a) I60ZNL (which is about how an ownership test can besatisfied by a single person);

(b) 160ZNN (which treats some shares as never having carriedrights);

(c) 160ZNO (which treats some shares as always having carriedrights);

(d) 160ZNP (which disregards redeemable shares);

(e) 160ZNQ (which is about how other rules do not affect howshares or rights are counted);

(f) 160ZNR (which deals with deaths of beneficial owners).

(2) The rule in section I60ZNM (which is about arrangements affectingbeneficial ownership of shares) also applies for the purposes of anownership test in this Division as if the reference to a particular timeduring the ownership test period were a reference to the ownershiptest time.

Division 3CC-How to treat shareholdings of less than1%

No. 95-17 June 1997 1653

Guide to Division 3CC160ZNSL What this Division is about

This Division has rules that make it easier for the listed public

company to satisfy the ownership tests in Division 3CB.

All shareholdings of less than 1% in the company are treated as ifthey were held by a single notional entity. This means that the

company does not have to trace through to the persons whobeneficially own those shares.

A similar rule applies if another listed public company is interposedbetween the company and those persons. All shareholdings of less

than 1% in the interposed company are treated as if they were held

by a different single notional entity. This means that the companydoes not have to trace through the interposed company to thepersons who beneficially own those shares in the interposedcompany.

Note I: The rules in this Division also apply to a company that is a 100%subsidiary of a listed public company: see section 160ZNSD.

Note 2: The rules in this Division do not apply if they would hide a failure bythe company to maintain the same owners: see sections I60ZNSRand I60ZNSS.

Table of sectionsSpecial tracing rules for listed public companies

160ZNSM Shareholdings of less than I% in the listed public company

I60ZNSN Shareholdings of less than I% in an interposed listed publiccompany

160ZNSO Notional shareholderI60ZNSP Notional shareholder taken to have minimum voting control,

dividend rights and capital rights

I60ZNSQ Voting, dividend and capital shareholding of less than 1%

When the rules in this Division do not apply

I60ZNSR Limit on listed public company splitting its shares into differentclasses

160ZNSS If listed public company would not have otherwise passed theownership tests

Special tracing rules for listed public companies

160ZNSM Shareholdings of less than 1% in the listed public company

This Division modifies how the ownership tests are applied to thelisted public company (the head company) if the company has:

(a) voting shareholdings of less than 1%; or

1654 No. 95-17 June 1997

(b) dividend shareholdings of less than 1%; or

(c) capital shareholdings of less than 1%.Note: For the ownership tests: see sections I60ZNSH, I60ZNSI and

I60ZNSJ.

160ZNSN Shareholdings of less than 1% in an interposed listed publiccompany

(1) This Division also modifies how the ownership tests are applied tothe head company if another listed public company (the interposedcompany) meets the conditions in subsections (2) and (3).Note: For the ownership tests: see sections 160ZNSH, 160ZNSI and

160ZNSJ.

(2) The interposed company must be interposed between the headcompany and persons (none of them companies) who:

(a) control (or are able to control) voting power in the headcompany indirectly through the interposed company; or

(b) have the right to receive, for their own benefit and indirectlythrough the interposed company, any dividends the headcompany may pay; or

(c) have the right to receive, for their own benefit and indirectlythrough the interposed company, any distributions of capitalof the head company.

(3) The interposed company must have:

(a) voting shareholdings of less than 1%; or

(b) dividend shareholdings of less than 1%; or

(c) capital shareholdings of less than 1%.

160ZNSO Notional shareholder

Notional shareholder of the head company

(1) The ownership tests in sections 160ZNSH, I60ZNSI and I60ZNSJare applied to the head company as if, at the ownership test time, asingle notional entity (the notional shareholder):

(a) directly controlled the voting power in the head company thatis carried by each voting shareholding of less than 1 % in thecompany at that time; and

(b) had the right to receive, for its own benefit and directly:

(i) any dividends the head company may pay in respect ofeach dividend shareholding of less than 1% in thecompany at that time; and

(ii) any distributions of capital of the head company inrespect of each capital shareholding of less than 1% inthe company at that time; and

(c) were a person (other than a company).

No. 95-17 June 1997 1655

Notional shareholder of the interposed company

(2) The tests are also applied to the head company as if, at theownership test time, for each interposed company, a different singlenotional entity (the notional shareholder):

(a) directly controlled the voting power in the interposedcompany that is carried by each voting shareholding of lessthan 1% in the interposed company at that time; and

(b) had the right to receive, for its own benefit and directly:

(i) any dividends the interposed company may pay inrespect of each dividend shareholding of less than 1%in the interposed company at that time; and

(ii) any distributions of capital of the interposed companyin respect of each capital shareholding of less than 1%in the interposed company at that time; and

(c) were a person (other than a company).

Persons who actually control or have rights are taken not to

(3) The tests are also applied to the head company as if, at theownership test time:

(a) the persons (other than companies) who control (or are ableto control) the voting power in the head company orinterposed company (whether directly, or indirectly throughone or more interposed entities) that is carried by each votingshareholding of less than 1% in the company had not had thatcontrol; and

(b) the persons (other than companies) who have the right toreceive for their own benefit (whether directly, or indirectlythrough one or more interposed entities):

(i) any dividends that the head company or interposedcompany may pay in respect of each dividendshareholding of less than 1% in the company; and

(ii) any distributions of capital of the head company orinterposed company in respect of each capitalshareholding of less than 1% in the company;

had not had that right.

160ZNSP Notional shareholder taken to have minimum voting control,dividend rights and capital rights

Minimum control of voting power

(I) If the ownership test time is after the start of the test period and:

(a) the voting power in the head company or interposed companythat the notional shareholder controls at that time;

is greater than:

1656 No. 95-17 June 1997

(b) the voting power in the company that the notionalshareholder controlled at the start of that period;

the notional shareholder is taken to control voting power in thecompany at that time only to the extent that it controlled it at thestart of that period.

Minimum percentage of rights to dividends and capital

(2) If the ownership test time is after the start of the test period and:

(a) the percentage of the dividends or distributions of capital ofthe head company or interposed company that the notionalshareholder has the right to receive at that time;

is greater than:

(b) the percentage (the lower percentage) of the dividends ordistributions of capital of the company that the notionalshareholder had the right to receive at the start of that period;

the notional shareholder is taken to have the right to receive thelower percentage of the dividends or distributions of capital at thattime.

160ZNSQ Voting, dividend and capital shareholding of less than 1%

Meaning of voting shareholding of less than 1%

(1) If all the shares in the head company or interposed company ofwhich an entity is the registered holder at the ownership test timecarry (between them) less than I% of the voting power in thecompany, those shares (except shares that are part of a substantialshareholding) constitute a voting shareholding of less than 1% inthe company at that time.

Meaning of dividend shareholding of less than 1%

(2) If all the shares in the head company or interposed company ofwhich an entity is the registered holder at the ownership test timecarry (between them) the right to receive less than 1% of anydividends that the company may pay, those shares (except sharesthat are part of a substantial shareholding) constitute a dividendshareholding of less than 1% in the company at that time.

Meaning of capital shareholding of less than 1%

(3) If all the shares in the head company or interposed company ofwhich an entity is the registered holder at the ownership test timecarry (between them) the right to receive less than 1% of anydistribution of capital of the company, those shares (except sharesthat are part of a substantial shareholding) constitute a capitalshareholding of less than 1% in the company at that time.

No. 95-17 June 1997 1657

When the rules in this Division do not apply

160ZNSR Limit on listed public company splitting its shares into differentclasses

This Division does not apply unless, at the ownership test time, allthe voting shares in the head company carry (between them):

(a) the right to receive more than 75% of any dividends the headcompany may pay; and

(b) the right to receive more than 75% of any distributions ofcapital of the head company.

160ZNSS If listed public company would not have otherwise passed theownership tests

This Division does not apply for the purposes of section 160ZNSBif the Commissioner considers it reasonable to assume that the headcompany would not meet the conditions in that section if it were notfor the rules in this Division.Note: The conditions in section I60ZNSB require the listed public

company to maintain the same owners at each ownership test timeduring the test period.

Division 3CD-How to treat interposed superannuationfunds, approved deposit funds and specialcompanies

Guide to Division 3CD

160ZNST What this Division is about

This Division has rules that make it easier for the listed publiccompany to satisfy the ownership tests in Division 3CB.

The company does not have to trace through any complyingsuperannuation funds, complying approved deposit funds or specialcompanies that are interposed between the company and personswho control any of the voting power in the company or have rightsto its dividends or capital.

Note: The rules in this Division also apply to a company that is a 100%subsidiary of a listed public company: see section I60ZNSD.

Table of sections

Special tracing rules for listed public companies160ZNSU When fund or special company is taken to control voting power

160ZNSV When fund or special company is taken to have rights todividends and capital

1658 No. 95-17 June 1997

Special tracing rules for listed public companies160ZNSU When fund or special company is taken to control voting power

Modification of application of ownership test about voting power

(1) This section modifies how the ownership test in section 160ZNSH(about control of voting) is applied to the listed public company if:

(a) a superannuation fund, approved deposit fund or specialcompany is interposed, at the ownership test time, betweenpersons (none of them companies) and the listed publiccompany; and

(b) at the ownership test time, those persons control (or are ableto control) any of the voting power in the listed publiccompany indirectly through the fund or special company (orthrough entities including it); and

(c) the fund or special company is a complying superannuationfund, complying approved deposit fund or special companyat all times during the year of income of the listed publiccompany in which the ownership test time occurs.

Iffund or special company has more than 50 members

(2) If the fund or special company has more than 50 members, the testis applied as if, at the ownership test time, the fund or specialcompany were a person (other than a company) who controlled thevoting power in the listed public company that those persons control(or are able to control).Iffund or special company has 50 members or less

(3) However, if the fund or special company has 50 members or less,the test is applied as if, at the ownership test time, each memberwere a person (other than a company) who controlled an equalproportion of the voting power in the listed public company thatthose persons control (or are able to control).Persons who actually control are taken not to control

(4) The test is applied as if, at the ownership test time, the voting powerin the listed public company that those persons control (or are ableto control) were not controlled by them (except as provided bysubsection (3)).

160ZNSV When fund or special company is taken to have rights todividends and capital

Modification of application of ownership test about dividend rightsand capital rights

(1) This section modifies how the ownership test in section I60ZNSI(about dividend rights) or 160ZNSJ (about capital rights) is appliedto the listed public company if:

No. 95-17 June 1997 1659

(a) a superannuation fund, approved deposit fund or specialcompany is interposed, at the ownership test time, betweenpersons (none of them companies) and the listed publiccompany; and

(b) at the ownership test time, those persons have the right toreceive for their own benefit, and indirectly through the fundor special company (or through entities including it):

(i) a percentage of any dividends that the listed publiccompany may pay; or

(ii) a percentage of any distributions of capital of the listedpublic company; and

(c) the fund or special company is a complying superannuationfund, complying approved deposit fund or special companyat all times during the year of income of the listed publiccompany in which the ownership test time occurs.

Iffund or special company has more than 50 members

(2) If the fund or special company has more than 50 members, the testis applied as if, at the ownership test time, the fund or specialcompany were a person (other than a company) who had the right toreceive, for the person's own benefit, that percentage of thosedividends or distributions of capital of the listed public company.

Iffund or special company has 50 members or less

(3) However, if the fund or special company has 50 members or less,the test is applied as if, at the ownership test time, each memberwere a person (other than a company) who had the right to receive,for the person's own benefit, an equal proportion of those dividendsor distributions of capital.

Persons who actually control are taken not to have it

(4) The test is applied as if, at the ownership test time, the persons(other than companies) who have the right to receive that percentageof those dividends or distributions of capital did not have that right(except as provided by subsection (3)).

Item 32, page 91 (line 13), omit "gain", substitute "loss".

Item 32, page 92 (lines 19 to 30), omit Division 3E.

Item 37, page 94 (line 14), omit "gain" (first occurring), substitute "loss".

Item 40, page 94 (lines 27 and 28), omit "Division 3B of Part IIIA (other thansubsections 160ZNH(1), 160ZNI(1) and 160ZNJ(1))", substitute "sections160ZNM to I60ZNR (inclusive)".

New Parts and new items-

At the end of Schedule 14, page 96 (after line 9), add:

1660 No. 95-17 June 1997

Part 4-Income Tax Assessment Act 1997 (revenuelosses)

43 After subsection 165-60(2)Insert:

(2A) So much of any amount included in the company's assessableincome under section 97 or 98A as is a capital gain that forms partof a net capital gain is not attributed to a period.

44 After subsection 165-60(6)Insert:

(6A) A net capital gain is not attributed to a period.

45 Subsection 165-60(7)Repeal the subsection, substitute:

(7) Fullyear amounts are amounts referred to in paragraphs (2)(a) and(b), so far as they are not reasonably attributable to a period, but donot include any part of a capital gain that forms part of a net capitalgain. Full year amounts are brought in at a later stage of the processof calculating the company's taxable income for the income year.

46 At the end of subsection 165-65(3)Add "and any net capital gain that accrued to the company in respect ofthe income year".

47 At the end of subsection 165-70(3)Add:

; and (f) any net capital gain that accrued to the company in respect ofthe income year.

48 Section 170-25Repeal the section, substitute:

170-25 Tax treatment of consideration for transferred tax loss(I) If the *loss company receives any consideration from the *income

company for the amount of the *tax loss:

(a) so much of the consideration as, in the opinion of theCommissioner, is given for the amount of the *tax loss isneither assessable income nor exempt income of the *losscompany; and

(b) a capital gain does not accrue to the *loss company becauseof the receipt of the consideration.

(2) If the *income company gives any consideration to the *losscompany for the amount of the *tax loss:

(a) the *income company cannot deduct the amount or value ofthe consideration; and

No. 95-17 June 1997 1661

(b) the *income company does not incur a capital loss because ofthe giving of the consideration.

49 Section 175-10 (heading)

Repeal the heading, substitute:

175-10 First case: income or capital gain injected into company because ofavailable tax loss


Omit "some or all of which (the injected income) it would not havederived", substitute ", or a capital gain accrued to the company, some orall of which (the injected amount) would not have been derived, orwould not have accrued,".


Omit "derivation of the *injected income", substitute "derivation oraccrual of the *injected amount".



175-21) Income or capital gain injected into company because of availabledeductions


Repeal the subsection (other than the note), substitute:

(I) The Commissioner may disallow deductions of a company (or partsof them) for an income year if:

(a) the company has *derived assessable income, or a capitalgain accrued to the company, some or all of which (theinjected amount) would not have been derived, or would nothave accrued, if the company did not have those deductions;and

(b) the income was derived, or the capital gain accrued, in thatincome year.

The disallowed deductions and parts of deductions may exceed the*injected amount.


Omit "*injected income", substitute "*injected amount".


Omit "*injected income", substitute "*injected amount".



1662 No. 95-17 June 1997

175-30 Someone else obtains a tax benefit because of a deduction, incomeor capital gain available to company

57 Paragraph 175-30(2)(b)

Repeal the paragraph, substitute:

(b) the scheme would not have been entered into or carried out ifsome or all (the available amount) of the assessable incomethat the company derived or of a capital gain that accrued tothe company:

(i) before it incurred the losses, outgoings or expenditurethat the deductions were for; and

(ii) in the same income year as it incurred them;

had not been derived or had not accrued, as the case may be.


Omit "the amount of the available income", substitute "the availableamount".

59 Subsection 995-1(1) (after the definition of in existence)

Insert:

injected amount has the meaning given by sections 175-10 and 175-20.

60 Subsection 995-1(1) (definition of injected income)

Repeal the definition.

Part 5-Income Tax (Consequential Amendments)Act 1997

61 Schedule 1 (items 236 and 237)

Repeal the items.

62 Schedule 1 (items 241 and 242)

Repeal the items.

63 Schedule 1 (item 248)

Repeal the item, substitute:

248 Subsection 170(13)

Repeal the subsection, substitute:

(13) The Commissioner may amend an assessment within 6 years afterthe day when the tax became due and payable under it, if theamendment is to give effect to any of these provisions:

(a) sections 165-180 to 165-205 and Division 175 of the IncomeTax Assessment Act 1997;

(b) sections 63B, 105AAA, 160ZND and 160ZNM to 160ZNR(inclusive), and Division 3D of Part IIIA, of this Act;

No. 95-17 June 1997 1663

(including any of those provisions as applied by any other provisionof that Act or this Act).

64 Application

The items in Schedule I to the Income Tax (Consequential Amendments)Act 1997 that are repealed by items 61 and 62 of this Schedule are takennever to have had any effect.

New schedule-

After Schedule 14, after page 96, insert:

Schedule 14A-Deductions for giftsPart 1-Amendment of the Income Tax

Assessment Act 19361 Subsection 78(3) (before the index entry relating to Academies-

professional)

Insert:

AAP Mawson's Huts Foundation (4)-Table 6, item 6.2.23Limited

2 Subsection 78(3) (after the index entry relating to Art galleries)Insert:

Australia Foundation for Culture (4)-Table 12, item 12.2.2and the Humanities Ltd.

3 Subsection 78(3) (after the index entry relating to AustralianIreland Fund)

Insert:

Australian National Korean War (4)-Table 5, item 5.2.10Memorial Trust Fund

4 Subsection 78(4) (at the end of Table 5)Add:

5.2.10 Australian National Korean the gift must be made after 1War Memorial Trust Fund September 1996 and before

2 September 1998

5 Subsection 78(4) (at the end of Table 6)Add:

6.2.23 AAP Mawson's Huts the gift must be made afterFoundation Limited 17 March 1997

1664 No. 95-17 June 1997

6 Subsection 78(4) (at the end of Table 12)

Add:

12.2.2 Australia Foundation for the gift must be made after 8

Culture and the Humanities November 1996Ltd.

Part 2-Amendment of the Income TaxAssessment Act 1997

7 Subsection 30-50(2) (at the end of the table)Add:

5.2.6 Australian National the gift must be made

Korean War Memorial before 2 September 1998

Trust Fund


6.2.23 AAP Mawson's Huts the gift must be made afterFoundation Limited 17 March 1997


12.2.2 Australia Foundation for the gift must be made afterCulture and the 8 November 1996Humanities Ltd.

10 Subsection 30-315(2) (before table item 1)Add:

IA AAP Mawson's Huts Foundation item 6.2.23Limited

11 Subsection 30-315(2) (after table item 9)

Insert:

9A Australia Foundation for Culture item 12.2.2

and the Humanities Ltd.

12 Subsection 30-315(2) (after table item 23)

Insert:

23A Australian National Korean War item 5.2.6Memorial Trust Fund

No. 95-17 June 1997 1665

13 ApplicationThe amendments made by this Part apply to assessments for the 1997/98income year and later income years.

New items-

At the end of Schedule 15, page 98 (after line 1), add:

Taxation Laws Amendment Act (No. 2) 1997

8 Schedule 1 (item 9)Repeal the item, substitute:

9 Subsection 160ZP(7)Omit "where" (first occurring), substitute "subsection (7AAA) appliesif'.

Taxation Laws Amendment (Private Health Insurance Incentives)Act 1997

9 Schedule 3 (before item 1)Insert:

Income Tax Assessment Act 1936On the motion of Mr Miles, by leave, the following amendments were madetogether:

Clause 2-

Page 2 (after line 11), after subclause (6), insert:

(6A) Part 4 of Schedule 14 commences, or is taken to have commenced,on 1 July 1997, immediately after the commencement of the IncomeTax Assessment Act 1997.

(6B) Part 5 of Schedule 14 commences, or is taken to have commenced,on 1 July 1997, immediately after the commencement of the IncomeTax (Consequential Amendments) Act 1997.

Page 2 (before line 12), before subclause (7), insert:

(6C) Part 2 of Schedule 14A commences at the later of:

(a) the start of the day on which this Act receives the RoyalAssent; and

(b) immediately after the commencement of Schedule 1 to theTax Law Improvement Act 1997.

Page 2 (after line 26), at the end of the clause, add:

(12) Item 8 of Schedule 15 is taken to have commenced immediatelyafter the commencement of item 9 of Schedule 1 to the TaxationLaws Amendment Act (No. 2) 1997.

(13) Item 9 of Schedule 15 is taken to have commenced immediatelyafter the commencement of item 1 of Schedule 3 to the TaxationLaws Amendment (Pri-ivate Health Insurance Incentives) Act 1997.

Remainder of Bill, as amended, agreed to.

1666 No. 95-17 June 1997

Bill, as amended, agreed to.

Consideration in detail concluded.

On the motion of Mr Miles, by leave, the Bill was read a third time.

12 INCOME TAX RATES AMENDMENT BILL (NO. 1) 1997

The order of the day having been read for the resumption of the debate on thequestion-That the Bill be now read a second time-

Question-put and passed-Bill read a second time.

Leave granted for third reading to be moved forthwith.

On the motion of Mr Miles (Parliamentary Secretary (Cabinet) to the PrimeMinister), the Bill was read a third time.

13 SELECTION COMMITTEE-REPORT

Mr Nehl (Chair) presented the following paper:

Selection Committee-Report relating to the consideration of committee anddelegation reports and private Members' business on Monday, 23 June 1997.

14 HIGHER EDUCATION FUNDING AMENDMENT BILL (NO. 1) 1997


Debate resumed by Mr Latham who moved, as an amendment-That all wordsafter "That" be omitted with a view to substituting the following words: "whilstnot declining to give the Bill a second reading, the House:

(1) is of the opinion that a properly resourced university sector is vital toAustralia's economic and social well-being;

(2) expresses deep concern at the damage caused by the Government'sfunding reductions to higher education, which are forcing universities toseek alternative sources of funds, such as undergraduate fees, which inturn are reducing access to universities at the very time when Australianeeds to be broadening such access;

(3) expresses particular concern at the ending of the successfulCommonwealth Industry Places Scheme; and

(4) condemns the Government for failing to recognise the importance ofeducation to Australia's future and for continuing to withdraw publicinvestment in it".

Debate continued.

Debate adjourned (Mr McClelland), and the resumption of the debate made anorder of the day for a later hour this day.

No. 95-17 June 1997 1667

15 APPROPRIATION BILL (NO. 1) 1997-98-REPORT FROM MAIN COMMITTEE-REFERENCE TO MAIN COMMITTEE

The Deputy Speaker reported that the Bill had been considered by the MainCommittee and was returned with an unresolved question (see item No. 2,Minutes of Proceedings of the Main Committee), and presented a certified copyof the Bill together with a schedule of the unresolved question.

Unresolved question-That the words proposed to be omitted stand part of thequestion-put.

The House divided (the Deputy Speaker, Mr J. N. Andrew, in the Chair)-

AYES, 60

Mr AbbottMr AndersonMr AndrenMr K. J. AndrewsMr AnthonyMr BarresiMr BartlettMr BillsonMrs BishopMr BradfordMr BroughMr CadmanMr R. A. CameronMrs DraperMrs Elson

Mr AlbaneseMr BeddallMr BevisMr BrownMr CreanMr DargavelMs EllisMr G. J. EvansMr M. J. EvansMr L. D. T. Ferguson

Mr EntschMr R. D. C. EvansMs GambaroMrs GashMr GeorgiouMrs E. J. GraceMr HardgraveMr HawkerMr Hicks*Mr HockeyMs JeanesMiss J. M. KellyDr KempMr LiebermanMr Lindsay

Mr LloydMr McArthur*Mr McDougallMr McGauranMr McLachlanMr MilesMr MutchMr NairnDr NelsonMr NevilleMr PyneMr RandallMr ReidMr ReithMr Ronaldson

Mr RuddockMr ScottMr A. C. SmithDr SouthcottMrs SullivanMr TaylorMr A. P. ThomsonMr TrussMr M. A. J. VaileMrs D. S. ValeMr WakelinMrs WestMr WilliamsMs Worth*Mr Zammit

Mr O'KeefeMr PriceMr Sawford*Mr Sercombe*Mr S. F. SmithMr TannerDr TheophanousMr K. J. ThomsonMr Willis

NOES, 39

Mr M. J. FergusonMr FitzgibbonMr E. L. Grace*Mr GriffinMr HattonMr HollisMr JenkinsMr JonesMr KerrMr Latham

Dr LawrenceMr LeeMr McClellandMr McLeayMr McMullanMr MartinMr A. A. MorrisMr P. F. MorrisMr MossfieldMr O'Connor

* Tellers

And so it was resolved in the affirmative.

Question-That the Bill be now read a second time-put and passed-Bill reada second time.

Mr Williams (Attorney-General and Minister for Justice), by leave, moved-That the Bill be referred to the Main Committee for further consideration.


1668 No. 95-17 June 1997

16 HIGHER EDUCATION FUNDING AMENDMENT BILL (NO. 1) 1997

The order of the day having been read for the resumption of the debate on thequestion-That the Bill be now read a second time-And on the amendmentmoved thereto by Mr Latham, viz-That all words after "That" be omitted witha view to substituting the following words: "whilst not declining to give the Billa second reading, the House:

(1) is of the opinion that a properly resourced university sector is vital toAustralia's economic and social well-being;

(2) expresses deep concern at the damage caused by the Government'sfunding reductions to higher education, which are forcing universities toseek alternative sources of funds, such as' undergraduate fees, which inturn are reducing access to universities at the very time when Australianeeds to be broadening such access;

(3) expresses particular concern at the ending of the successfulCommonwealth Industry Places Scheme; and

(4) condemns the Government for failing to recognise the importance ofeducation to Australia's future and for continuing to withdraw publicinvestment in it"-

Debate resumed.


Question-That the Bill be now read a second time-put and passed-Bill reada second time.

Messagefrom the Governor-General

Message No. 152, dated 30 May 1997, from His Excellency theGovernor-General was announced recommending an appropriation for thepurposes of the Bill.


On the motion of Mr Abbott (Parliamentary Secretary to the Minister forEmployment, Education, Training and Youth Affairs), the Bill was read a thirdtime.

17 SMALL SUPERANNUATION ACCOUNTS AMENDMENT BILL 1997


Debate resumed.

Question-put and passed-Bill read a second time.


On the motion of Mr Scott (Minister for Veterans' Affairs), the Bill was read athird time.

No. 95-17 June 1997 1669

18 ADJOURNMENT

It being 10.30 p.m.-The question was proposed-That the House do nowadjourn.

Debate ensued.

The House continuing to sit until 11 p.m.-The Speaker adjourned the Houseuntil tomorrow at 9.30 a.m.

PAPER

The following paper was deemed to have been presented on 17 June 1997:

Employment Services Act-Employment Services (Case ManagementDocuments) Determination 1997 No. 1.

ATTENDANCE

All Members attended (at some time during the sitting) except Mr Adams, MrsBailey, Mr P. J. Baldwin, Mr R. C. Baldwin, Mr Dondas, Mr Downer, MrsGallus, Mr Howard, Mrs Johnston, Mr Sharp, Mr Somlyay, Mrs Stone and MrWilton.

L. M. BARLINClerk of the House of Representatives

1670 No. 95-17 June 1997

1996-97

HOUSE OF REPRESENTATIVES

SUPPLEMENT TO VOTES AND PROCEEDINGS

No. 95

MAIN COMMITTEEMINUTES OF PROCEEDINGS

TUESDAY, 17 JUNE 1997

1 The Main Committee met at 4.30 p.m.

2 APPROPRIATION BILL (NO. 1) 1997-98-BUDGET DEBATE

The order of the day having been read for the resumption of the debate on thequestion-That the Bill be now read a second time-And on the amendmentmoved thereto by Mr G. J. Evans (Deputy Leader of the Opposition), viz.-Thatall words after "That" be omitted with a view to substituting the followingwords: "whilst not declining to give the Bill a second reading, the House notesthat the Budget:

(1) does nothing for jobs-the nation's most overwhelming current economicand social problem;

(2) squanders, by breaking the promise to introduce superannuation co-contributions, an historic opportunity to build a massive new privatesavings pool, and does so in a way that undercuts decent retirementincomes for lower and middle income earners;

(3) continues the assault on families, the elderly and the needy;

(4) contains many mindless and counter-productive cuts affecting the qualityand decency of life in Australia, and harming our international reputation;

(5) for all its cuts and destructive impact, did not meet the exaggeratedexpectations the Government had created as to the size of its deficitreduction achievements and projected future surpluses; and

(6) has been characterised by even the Government's best friends as lackingin shape, direction and vision"-

Debate resumed.

No. 95-17 June 1997 1671

Suspension of sitting

At 4.50 p.m., a division having been called in the House, the proceedings weresuspended.

Resumption of sitting

At 5.02 p.m., the proceedings were resumed.

Debate continued.

Question-That the words proposed to be omitted stand part of the question-put and not being resolved-Bill to be returned to the House.

3 APPROPRIATION BILL (NO. 2) 1997-98


Debate having been resumed by Mr Latham-

Suspension of sitting

At 8.02 p.m., a division having been called in the House, the proceedings weresuspended.

Resumption of sitting

At 8.15 p.m., the proceedings were resumed.

Mr Latham continued his speech.

Mr Latham was granted leave to continue his speech when the debate isresumed.

Debate adjourned, and the resumption of the debate made an order of the dayfor the next sitting.

4 APPROPRIATION BILL (NO. 1) 1997-98

The order of the day having been read for the consideration in detail of theBill-

Consideration in detail

Schedule-

Ordered-That the proposed expenditures for the purposes and services in theSchedule be considered in the following order, either separately or together, asshown:

1672 No. 95-17 June 1997

Department of the Prime Minister and Cabinet

Department of the Treasury

Department of Finance together

Advance to the Minister for Finance

Provision for Running Costs Borrowings

Department of Foreign Affairs and Trade

Department of Primary Industries and Energy

Department of Industrial Relations

Department of Industry, Science and Tourism

Department of Defence ttogetherDepartment of Veterans' Affairs

Department of Transport and Regional Development

Department of Health and Family Services

Department of Social Securitytogether

Department of Immigration and Multicultural Affairs

Department of Employment, Education, Training and Youth Affairs

Attorney-General's Department

Department of the Environment, Sport and Territories together]togetherDepartment of Communications and the Arts

Department of Administrative Services

Proposed expenditures-

Department of the Prime Minister and Cabinet, $1 046 985 000-

Department of the Treasury, $2 868 893 000-

Department of Finance, $505 327 000-

Advance to the Minister for Finance, $215 000 000-

Provision for Running Costs Borrowings, $20 000 000-

together debated and agreed to.

Proposed expenditure-Department of Foreign Affairs and Trade,

$2 107 821 000--debated and agreed to.

Proposed expenditure-Department of Primary Industries and Energy,

$435 682 000-debated and agreed to.

No. 95-17 June 1997 1673

Proposed expenditure-Department of Industrial Relations, $126 844 000-debated and agreed to.

Proposed expenditure-Department of Industry, Science and Tourism,$1 699 412 000-debated and agreed to.

Proposed expenditures -

Department of Defence, $10 937 163 000-

Department of veterans' Affairs, $1 982 406 000-

together-

Debate adjourned (Mr Sercombe), and the resumption of the debate made anorder of the day for the next sitting.

5 ADJOURNMENT

On the motion of Mr McGauran (Minister for Science and Technology), theMain Committee adjourned at 10.19 p.m.

The Deputy Speaker fixed tomorrow at 9.45 a.m. for the next meeting of theMain Committee.

I. C. HARRISClerk of the Main Committee

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